The New York Stock Exchange with a Hims & Hers Health banner in the Manhattan borough of New York City on January 21, 2021.
Carlo Allegri | Reuters
Health for him and herThe online provider of erectile dysfunction and hair loss treatments had its best day on the stock market since its debut three years ago after quarterly results beat estimates and the company said it expects to make its first year full profitability in 2024.
Hims & Hers shares soared 32% to $13.48 on Tuesday afternoon. They are now up more than 50% so far this year, after being up 39% in 2023.
Hims & Hers is an online platform where patients can meet with providers and get personalized support for skin care, mental health, sexual health, weight loss, and hair care. Revenue rose 47% to $246.6 million, beating the $246 million expected by analysts, according to LSEG, formerly known as Refinitiv.
Founded in 2017, the company went public through a special purpose acquisition company in January 2021. Hims & Hers generated fourth-quarter net income of $1.2 million, or 1 cent per share, compared with a net loss of $10.9 million, or 5 cents. an action, a year ago.
For the first quarter, Hims & Hers expects revenue growth of at least 40% from a year ago, to between $267 million and $272 million. Analysts had expected sales of $253 million. Full-year revenue will fall between $1.17 billion and $1.2 billion.
During the company's quarterly call with investors on Monday, CEO Andrew Dudum said custom solutions have helped attract new users and drive greater longevity on its platform. He said newer specialties, such as weight loss, mental health and dermatology for her, are seeing greater adoption and each could generate more than $100 million in revenue by 2025.
As for mental health, Dudum said the company's use of artificial intelligence has helped predict how an individual patient will respond to medication, which can mean avoiding a “brutal” process of trial and error.
Dudum said the category is expanding by triple digits and “continues to be one of our fastest-growing specialties.”
Jefferies analysts described the results as “more satisfying than Thanksgiving dinner” due to better-than-expected revenue, profitability and guidance.
Hims & Hers forecasts adjusted earnings of between $22 million and $27 million in the first quarter, compared with the $14 million expected by analysts, according to StreetAccount.
“While we believe the upside was expected to be strong, we expect the market to be quite pleased with the margin leverage in the quarter and the leverage implied by the guidance,” wrote the Jefferies analysts, who recommend Buy the stock.
Analysts at Deutsche Bank, who have a hold rating on the stock, wrote Monday that Hims & Hers finished the year strongly, with 2024 guidance “significantly better than expected.” They increased their price target from $8 to $14.
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